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House Finance hears proposal to let governor reclassify leftover federal recovery funds, reduce reporting frequency
Summary
Budget office and administration staff told the House Committee on Finance that the governoris seeking authority to reclassify state and local fiscal recovery funds (SFRF) at risk of federal forfeiture to other eligible, already-obligated uses and to move Pandemic Recovery Office reporting from quarterly to semiannual through 2026.
The House Committee on Finance on Tuesday heard administration testimony that the governoris proposing two changes affecting federal state and local fiscal recovery funds: expanded executive authority to reclassify at-risk SFRF dollars and reduced reporting frequency by the Pandemic Recovery Office.
Administration officials said the reclassification power would let the governor reassign funds that were obligated by Dec. 31, 2024, but later came in under budget or otherwise produced unspent balances, to other eligible, already-obligated uses rather than automatically routing them to the unemployment insurance trust fund.
Sharon, the administration presenter, told the committee "the pandemic recovery office,…
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